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withholding tax at the time of downpayment

Former Member
0 Kudos

Dear all,

While paying advance payment, i want to deduct tds. Please tell me the process.

I included tds codes at the time of payment in the vendor master.but still when i do donwpayment and click withholding tax tab am unable to deduct tds at the time of downpayment.

What might be the reason?

Please guide me.

Will award full points.

Thanks & Regards,

A.Anandarajan.

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hiii Anandrajan...

U r true we r not getting full TDS calculation while making down payment..Actually i think u r getting the tds codes which u have configured the tax types for GROSS AMOUNT...it wont work for the INHERIT BASE .

Do the following ....do settings for TDS on Payment postings..

For the payment tax codes u have to configure on the direct payment base(Gross amount base ) not on inherit base...

Select the Gross Amount radio button and dont select the Inherit base and select check box Post w/o tax.

Give percentage for each tax code like Ed.Cess and SHED and Surcharge and TDS on the basis of Gross amount like 194J -TDS - Base Amount 100% - TDS - 10% on base amount

Surcharge - Base Amount - 10% - Surcharge - 10%

Ed.Cess - Base Aount - 100% - Ed.Cess - 0.2200%

SHED - Base Amount - 100% - Second.Higher Ed.Cess - 0.1100%

This is the correct configuration which i have done in my project.. do the settings for total section codes..

Assign full points

Regards

Ramki

Former Member
0 Kudos

Dear all

Thanks for your reply. I had already done all the settings prescribed by you. But the tds codes are not coming while doing downpayment.

Can anybody tell the process in detail so that it will work?

Will award points.

Regards,

A.Anandarajan.

Former Member
0 Kudos

Hi,

First you have defined

wht country

wht tax keys where we specify, as a practice section names under which tds is deducted

Recipient types are defined - as company or others

Business palce

Tax due dates

Section codes

WHT tax types - at the time of invoice, payment

WHT tax codes - here specify percentage of tax to be deducted on invoice, payment. These WHT tax codes play important role of deduction you might have went wrong here, check

these wht tax type and wht tax code are assigned in vendor master.

Above mentioned are basics for deducting TDS. once through this next stage arrives .

Former Member
0 Kudos

Hiii Anandrajan.. first u go to XK02 - Vendor master chasnge , in that plss enter the withholding tax codes under which section code the vendor will come..then only u will get tax codes when u r doing postings..ok

this will help u

Regards

Ramki

Former Member
0 Kudos

Hi there,

I'd like to know if it works on non-dp items?

If yes, then there's no error on w/tax config nor on the vendor master.Kindly check your special gl config and your gl accounts if tax is allowed.

If no, then try to check config setting below:

check w/tax countries

w/tax keys;

tax type, tax code and base amount calculation;

tax type assignmnt to co code;

activation of w/tax;

account assignment rules;

and vendor master update.

Hope it'll help. Regards

Former Member
0 Kudos

Hi

Assign the W Tax type to Company code also.

Regards

Amit

former_member13777
Active Contributor
0 Kudos

Hi,

Have you done setting in the "Define Withholding Tax Type for Payment Posting"

Then assign withholding tax code for the type defined. give rate

Vendor master assign this code.

it will work

regs

sunoj